Royalty Pharma Plc (RPRX) Fair Value & Analysis
Healthcare · US · Market cap $33.5B · ISIN GB00BMVP7Y09
What is Royalty Pharma Plc really worth?
Royalty Pharma Plc
RPRX · US
A solid business, but trading 164% above our fair value of $24.22.
Strengths
Risks
For context
Fair value as of: Aug 22, 2026
From 22 valuation models · updated 14 days ago
Share price +11.1% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
- The price sits above even our optimistic bull case ($34.00). The favourable scenario is already priced in.
- A fairly wide model range ($15.06 to $34.00) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.
How to read this chart
60‑month range $23.46 – $63.88 · fair‑value band $15.06 – $34.00 · the $63.88 price screens above the $24.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 22, 2026.
Analysis
Royalty Pharma Plc (RPRX) currently trades at $63.88, while our model-based Fair Value estimate is $24.22, implying the stock looks roughly 163.8% overvalued today. The Quality Score stands at 70/100 (solid quality), in the Healthcare sector. Bull case: the Growth DCF group reads highest at a median of $47.52 per share, and 0 of the 21 models we run sit above the $63.88 price. Bear case: the Earnings-Based group reads lowest at $5.77, and 21 of the 21 models stay below the price. Evidence for this calculation is medium.
Over the trailing twelve months, Royalty Pharma Plc generated revenue of $2.4B at a net margin of 33.9%. Revenue grew 11.0% year over year. It earns a return on equity of 13.8%. Net debt stands at $8.3B. Fundamentals as of Aug 22, 2026
Our scenario range runs from $15.06 (bear case) to $34.00 (bull case); at $63.88, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades near its 52-week high and 96% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −49% fair-value upside, at −62%, RPRX screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.6828 per share, which is 2.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 22 models by family
Widest divergence: Growth DCF ($47.52) versus Earnings-Based ($5.77). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 66 · Market factors (momentum, volatility) 91
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry in the United States.
Full company description
Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry in the United States. Its portfolio consists of royalties on approximately 35 marketed therapies and 20 development-stage product candidates that address various therapeutic areas, such as rare disease, oncology, neuroscience, infectious disease, hematology, and diabetes. The company has research and development funding collaboration to advance the development of JNJ-4804, an investigational medicine for autoimmune diseases. The company was founded in 1996 and is based in New York, New York.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Royalty Pharma Plc reported revenue of $2.4B in FY2025 versus $2.3B in FY2021, a compound +1.0%/yr. Reported net income was $771M in FY2025, compounding +5.6%/yr from FY2021.
of which total revenue +3.3 % · buybacks/dilution +0.4 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
RPRX screens 164% overvalued. Compare with Vertex Pharmaceuticals Incorporated →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Royalty Pharma (RPRX) Bets $100M On A Blood Disorder Breakthrough
- Royalty Pharma plc (RPRX) vs. AstraZeneca PLC (AZN): Which Biopharma Model Offers the Better Growth Story?
- Royalty Pharma (RPRX) Crossed Above the 20-Day Moving Average: What That Means for Investors
- Zealand Pharma (CPSE:ZEAL) On Its Royalty Pharma Deal And The Fair Value Debate
Peer Group
Biotechnology · 622 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Biotechnology median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 46/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Biotechnology stocks, each showing price versus our Fair Value estimate (as of Aug 22, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Vertex Pharmaceuticals Incorporated VRTX | $547.55 | $278.78 | −49% |
| Regeneron Pharmaceuticals, Inc REGN | $807.71 | $594.40 | −26% |
| argenx SE ARGX | €877.60 | €292.84 | −67% |
| Samsung Biologics Co 207940 | 1,518,000 KRW | 1,055,793 KRW | −30% |
| CSL Limited CSL | A$174.50 | A$141.68 | −19% |
| Alnylam Pharmaceuticals, Inc ALNY | $228.61 | $51.70 | −77% |
| Celltrion, Inc 068270 | 190,700 KRW | 74,519 KRW | −61% |
| BeOne Medicines AG ONC | $362.51 | $111.35 | −69% |
| BioNTech SE BNTX | $111.40 | $45.66 | −59% |
| Incyte Corporation INCY | $123.22 | $115.79 | −6% |
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